US National Unemployment Remained Steady at 4.2%
The US national unemployment rate remained steady at 4.2%. Total nonfarm payroll employment increased by 139,000 in May, similar to the average monthly gain of 149,000 over the past 12 months. The total number of unemployed persons remained at 7.2 million. In May, 1.5 million people were considered long-term unemployed (those jobless for 27+ weeks); long-term accounts for 20.4% of all unemployed people. In May, the labor force participation rate decreased to 62.4%. and the employment-population ratio decreased slightly to 59.7%.
Job Growth Sectors:
The following industry sectors saw notable job change in May:
- Healthcare (+62K)
- Leisure and Hospitality (+48K)
- Social Assistance (+16K)
- Government (-22K)
In May, healthcare led job growth reflects strong demand for medical professionals. Leisure and hospitality jobs increased as travel and entertainment remained steady, while social assistance grew in order to support essential services.
In contrast, government employment declined, likely due to budget shifts and seasonal changes. Overall, service industries continue to drive job growth, with healthcare and hospitality leading the way.
Wage Growth:
Average hourly earnings increased by 0.4% in May, maintaining a trend of wage growth over the past 12 months.
Educational Attainment:
- Unemployment for persons with less than a high school diploma decreased to 5.5%. This sector remains the highest unemployment rate based on level of education.
- High school graduates with no college increased slightly to 4.5% in May.
- Those with some college decreases slightly to 3.3%
- Bachelor’s degree and higher remained the lowest group and changed little to 2.6%.
Major Markets
- Of the top 5 major US markets, DFW unemployment remained the lowest at 3.5%.
- 4 out of 5 US markets had a MoM decrease.
- Of the top 5 major US markets, Houston and Los Angeles saw the largest YoY decrease in unemployment of 20 bps.
Employment Changes in Key Metropolitan Areas
Over the year, nonfarm payroll employment increased in 20 metropolitan areas, decreased in 1 area, and was essentially unchanged in 366 areas
The most significant employment gains occurred in:
- New York-Newark-Jersey City, NY-NJ-PA: Added 96,100 jobs.
- Dallas-Fort Worth-Arlington, TX: Gained 52,100 jobs.
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: Increased by 35,800 jobs.
